Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 40. the wall street journal data group and bankrat

40. The Wall Street Journal Data Group and Bankrate.com presented the rates on the following...

80.2K

Verified Solution

Question

Finance

image
40. The Wall Street Journal Data Group and Bankrate.com presented the rates on the following types of mortgages as of March 25, 2013 as follows: 30-yr mortgage, fixed - 3.898; 15-yr mortgage, fixed - 3.04%; 5-yr Adjustable Rate Mortgage - 2.93%; Jumbo Mortgages 4.19% Compare these mortgage types by computing their risk premiums and characterizing these as spelled out in the following table: (6 pt.) Mortgage Type A versus B Risk Premium Dype of R - R Risk ** 30-yr Pixed 15-yr Fixed 3.048 3.898 15-yr Fixed 5-yr ARM (2.938) 3.040 Jumbo Loan 30-yr 4.198 Fixed(3.89%) (Conforming) Loan * R R _ interest rate on mortgage type A (R) or B(R) as stated above ** e.g. default risk, prepayment risk, etc

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Chemistry
1.2K views

1) How many grams of solid potassium cyanide should be added to 1.50 L of a 0.236...

Physics
1.2K views

An eagle is flying horizontally at 5.7 m/s with a fish in its claws. It accidentally...

Physics
1.2K views

Two objects are said to be in parallel when they both act on the system in...

Physics
1.2K views

18 In the circuit shown in figure 32 W13a E F G and H cells...

Basic Math
1.2K views

A population numbers 16,000 organisms initially and grows by 13.3% each year. Suppose P represents...

Accounting
1.2K views

Entity ABC Limited gives warranties at the time of sale to purchasers of its product....

Accounting
1.2K views

applied leadninf has...

Accounting
1.2K views

Chapter 9 Is a "Take Out" Question similar to P9-7 py. 484. Accounting 103 m...

Accounting
1.2K views

What does the [E] entry eliminate at consolidation? fair value of the subsidiary...

Accounting
1.2K views

Why does Walmart add the amount of depreciation and amortization expense to net income when...

Accounting
1.2K views

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct...

Finance
1.2K views

11. Which loans are NOT covered under HMDA? a. Commercial loans b. Home improvement loans...